Investors Punish Hedge Funds With Worst Outflow Since '09

Feb 15 2013 | 2:21am ET

Hedge funds suffered their worst outflows in nearly four years in December, with investors pulling more than $20 billion from the industry as 2012 drew to a close.

The huge withdrawals, the highest in 44 months, swamped the modest inflows that hedge funds had seen during the first 11 months of last year. The $20.7 billion net outflow in December left the industry $14.2 billion poorer for the year, according to BarclayHedge and TrimTabs Investment Research.

“Underperformance versus the S&P 500 Index is a likely culprit in last year’s outflows,” BarclayHedge founder Sol Waksman said. “We found that from 2010 through 2012, hedge funds gained 14.1% while the S&P 500 Index rose 27.9%.  That’s a major shift from the trend over the past five years, when hedge funds gained 10.7% while the S&P 500 was essentially flat.”


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?